Related: 8 Timely Europe, Japan ETFs Leading the Pack

Macklow-Smith believed that there is room for the yield curve to modestly steepen, bolstering loan interest for banks, as growth is expected to remain solid this year.

With the economy improving, European earnings have more room to strengthen.

“Profitability is picking up kind of slowly and unevenly geographically,” Will Hobbs, the head of investment strategy at Barclays’s wealth management and is also recommending financial stocks to clients, told Bloomberg. “Loan growth should hopefully pick up and eventually the central bank should be a bit more helpful.”

For more information on the European markets, visit our Europe category.

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